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Two Sides of the Same Coin: A Pension Scheme Explains Its Approach to the Establishment of Effective Corporate Governance and Risk Management Systems

by Dr Hans Wilhelm Korfmacher

The WPV — the Versorgungs-werk der Wirtschaftsprüfer und der vereidigten Buchprüfer, which translates as the Superannuation Fund for Auditors and Certified Accountants — was established as a pension scheme for these professions in 1993 by legislation passed by the federal German state of North Rhine-Westphalia.

Initially, the WPV was set up only for auditors based in North Rhine-Westphalia. In light of the mobility of the auditing profession, however, and the fact that auditors work across the entire country — and also to ensure an efficient organisational size — the other federal states (with the sole exception of Saarland) decided not to establish their own superannuation funds but instead to join the WPV through treaties signed with North Rhine-Westphalia. As such, a statutory basis is provided for the WPV to ensure the provision of retirement, disability and dependant bene